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The Reserve Bank of Australia has raised interest rates five times this year, bringing rates to an 18-year high.
The Reserve Bank of Australia hiked interest rates to an 18-year high on Tuesday – the fifth rate hike this year.
For someone with an average-sized new mortgage of $731,000, paying a typical rate of 6.2%, a 0.25 percentage point rate increase would add about $119 to their $4,596 monthly repayments.
In that scenario, their total repayments would have risen by nearly $600 if their bank passed on all of this year's rate rises.
Use this interest rate calculator to see what you might have to pay.
Australia's Reserve Bank raised interest rates for a fifth time in 2026, forecasting inflation to reach 4.5 per cent this year and real wages to shrink, with mortgage repayments set to hit their highest level since 2007-2008.
The RBA's fifth 2026 rate rise adds roughly $456 per month to repayments on a $600,000 variable-rate loan, while economists explain impacts on renters, savers, the Australian dollar, and car and personal loan borrowers.
The Reserve Bank of Australia has raised the cash rate target by 0.25 percentage points to 4.85 per cent, the highest level since late 2008 and the fifth increase in 2026. The board voted 6-3 in favour of the hike, which aims to dampen inflation and keep annual consumer price inflation around 2.5 per cent over the cycle.

The Reserve Bank of Australia has raised the cash rate from 4.6% to 4.85%, the fifth hike this year and the highest level since 2008, as inflation reached 4.3% in the year to September amid a global oil shock triggered by the war in the Middle East. Treasurer Jim Chalmers warned higher borrowing costs would make things harder for households already under substantial pressure.
Indigenous sea farmers in the remote Australian Aboriginal community of Wadeye are expanding a commercial mud crab venture, aiming to provide local jobs and sustainable economic growth.
National Australia Bank (NAB) has announced plans to cut up to 2,500 jobs, representing 6 per cent of its workforce, by mid-2027. The restructuring aims to simplify operations and reduce reliance on external contractors, with 1,500 cuts expected this year.